# Yields

Yield farming is one of the most rewarding features of DeFive, offering users the opportunity to earn **FIVE tokens** by providing liquidity to the platform. As an evolution of WigoSwap, DeFive’s farming mechanisms are designed to maximize rewards while maintaining fairness and sustainability.

By adding liquidity to DeFive, users earn **LP Tokens** that can be staked to generate FIVE rewards. While yield farming generally offers higher returns than staking FIVE directly, it comes with the risk of **Impermanent Loss**—a concept that’s easy to understand with proper guidance.

#### Key Features of Yield Farming on DeFive

1. **Earn FIVE Rewards**\
   Users who stake LP Tokens in DeFive farms earn **FIVE** as a reward. Farms are incentivized with fair APRs, governed by the **DAO and veFIVE holders**, ensuring a transparent and community-driven reward system.
2. **Fair and Sustainable Emissions**\
   DeFive’s yield farming features upgraded emission rates:

* **Up to 70% of emissions (minted FIVE tokens per second)** are allocated to liquidity providers, creating a robust incentive structure.
* Emission rates are capped at **5 FIVE/sec**, with the ability to adjust emissions dynamically for platform sustainability.

3. **Risk vs. Reward**\
   While yield farming offers higher rewards compared to staking, users should be aware of **Impermanent Loss**. This occurs when the value of tokens in a liquidity pool fluctuates, affecting the final value of your assets. Learning about this risk and managing it effectively can help users make the most of farming opportunities.

#### How to Use DeFive Yield Farms

**Step 1: Add Liquidity**

1. **Navigate to the “Liquidity” section**:
   * Select the token pair you want to provide liquidity for (e.g., FIVE/S).
2. **Deposit tokens**:
   * Enter the amount for each token and approve the transaction.
3. **Receive LP Tokens**:
   * After depositing, you’ll receive LP Tokens representing your share of the liquidity pool.

**Step 2: Stake LP Tokens**

1. **Go to the “Farms” section**:
   * Find the farm corresponding to your LP Tokens (e.g., FIVE/S farm).
2. **Stake LP Tokens**:
   * Approve the transaction and stake your LP Tokens in the farm.
3. **Start earning FIVE**:
   * As you stake LP Tokens, you’ll begin earning FIVE rewards.

**Step 3: Harvest and Manage Rewards**

1. **Harvest rewards**:
   * Visit the farm dashboard and click “Harvest” to collect your FIVE tokens.
2. **Reinvest or use rewards**:
   * Stake harvested FIVE in **veFIVE staking** to gain governance power, or use them elsewhere in the ecosystem.

#### Benefits of Yield Farming on DeFive

1. **High Rewards**\
   DeFive’s farms are designed to offer competitive APRs, giving liquidity providers meaningful returns for their contributions.
2. **Fair Emissions**\
   Up to 70% of all new FIVE emissions are dedicated to liquidity providers, ensuring rewards are aligned with user contributions and ecosystem needs.
3. **Governance Influence**\
   veFIVE holders have a say in determining farm APRs, listing new farms, and de-listing underperforming ones, creating a platform shaped by its community.
4. **Easy Entry and Exit**\
   With a user-friendly interface and seamless integration, DeFive makes it simple to participate in yield farming and manage your LP Tokens.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.defive.com/overview/defi/yields.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.